### Understanding Auto Insurance
The cost of auto insurance varies widely based on several factors:
- Location: Urban areas typically have higher premiums due to increased risk of accidents and theft.
- Driving Record: A clean driving record can significantly reduce premiums, while tickets and accidents can increase them.
- Vehicle Type: Luxury and sports cars often cost more to insure due to higher repair costs and theft rates.
- Coverage Level: Opting for higher coverage limits and lower deductibles increases premiums.
According to the National Association of Insurance Commissioners, the average annual premium for auto insurance in the United States was $1,190 in 20182.